Bubble Sitters

Saw a ridiculous story on Good Morning America this morning about bubble sitters. Its when somebody sells their home at the top of a bubble rents for a year and buys back a home when the prices fall. There are all kinds of California stories about how people saved $100,000 doing this but is it a legitimate way to save or make money? I think this is crazy. I know California has crazy fluctuations in house prices but renting is never the best option. Sure you could make money but what if prices don’t fall dramatically? You lose a year’s payments, most likely have to pay a higher interest rate on the next home you buy, and have to move in a bubble priced apartment and store your stuff. Sounds fun. Probably the same people who have interest only loans are going to be the ones doing this.